GOLD PRICES DAILY CHART – 21-DMA MAY GUIDE PRICE HIGHER

Gold looks set to extend its rebound from the November low (1764.73), as prices remain constructively perched above the sentiment-defining 200-day moving average (1801.96) and psychological support at 1830.

However, with the RSI continuing to track the downtrend extending from the August extremes, and the MACD indicator travelling firmly below its neutral midpoint, the path of least resistance seems to favour the downside.

Nevertheless, a more extended rebound could be on the cards if psychological support at 1830 remains intact.

A daily close back above the 21-DMA (1843.93) would probably neutralize near-term selling pressure and open the door for a retest of the monthly high (1875.28). Clearing that could propel price towards Descending Channel resistance and the 100-DMA (1911.10).

Alternatively, breaching 1830 could generate a pullback towards the 61.8% Fibonacci (1812.36), with a daily close below bringing range support at 1780 – 1790 into focus.

GOLD PRICES 4-HOUR CHART – RANGE SUPPORT NURTURING REBOUND

Zooming into a 4-hour chart bolsters the bullish outlook depicted on the higher timeframes, as price rebounds robustly away from range support at 1825 – 1828.

An impulsive push to retest the 61.8% Fibonacci expansion (1873.12) looks likely if buyers can hurdle the 21-MA (1853.23)

Breaking above 1874 is probably required to carve a path for price to challenge psychological resistance at 1900 and the 100% Fibonacci (1905.05).

On the other hand, sliding below the 100-MA (1835.92) could send bullion back towards range support with a break below bringing the 61.8% Fibonacci (1812.36) into the crosshairs.

Reference by: Daniel Moss, Analyst for DailyFX